Aviation Daily

Staff
U.S. Major Carriers Traffic April, 4 Months 1995 (000) April April % 1995 1994 Change America West Revenue Passenger Miles 1,139,630 1,025,973 11.1 Available Seat Miles 1,574,404 1,462,659 7.6 Load Factor (%) 72.4 70.1 American

Staff
Boeing said yesterday it plans to reduce employment by about 12,000 this year, 5,000 more than it estimated earlier and most of them in the Seattle area, due to "increasing competitive pressures." Boeing now employs about 113,900, down from about 117,300 at the beginning of the year. "We are pursuing aggressive efforts to reduce costs so that we can maintain and expand our leadership position in the market," said Chairman Frank Shrontz.

Staff
Airport Systems International said yesterday it will provide an instrument landing system at Concord, N.C., Regional Airport under a contract valued at $350,000.

Staff
USAir plans to inaugurate weekend flights to Cancun Nov. 19 from its Charlotte hub and in February 1996 from Baltimore/Washington Airport. The carrier, awaiting approval from the Mexican government for the service, plans to operate one flight from Charlotte on Saturdays, adding a Sunday flight on Dec. 16. It has not yet finalized its schedule for service from BWI. If traffic is strong, USAir will consider daily service for the 1996- 1997 season.

Staff
Delta is offering SkyMiles members a chance to win a travel package for the 1996 Olympic Games in Atlanta. The prize includes hotel accommodations, daily tickets to selected events, ground transportation and access to special hospitality and entertainment areas for two persons. Delta will award the package to the frequent flyer in each of the 32 countries it serves who accrues the most qualifying base miles on Delta or Delta Connection carriers between May 1 and Dec. 31.

Staff
Ashtech has begun shipping its Altair AV-12 Global Positioning System receiver to dealers and distributors. The panel-mounted AV-12 features a fully integrated high-resolution color moving map display with common symbology. A split screen displays the moving map and navigation information simultaneously. The company said FAA approval has been granted for visual flight rules.

Staff
United's Association of Flight Attendants unit is scheduling more protests against the opening of a flight attendant domicile in Hong Kong, scheduled July 1. Flight attendants will pass out leaflets today at Denver Airport and tomorrow at Chicago O'Hare and United ticket offices in Chicago and Washington National Airport. The flight attendants believe they will lose thousands of overseas flying jobs, which are bid first by the most senior employees, to foreign-based flight attendants.

Staff
British Airways' two 49%-owned continental Europe "quasi-subsidiaries," Deutsche BA and TAT European Airlines, suffered combined pre-tax losses of nearly $150 million in fiscal 1994-1995 and were the "black spot on the horizon" for BA, Managing Director Robert Ayling said yesterday. BA itself posted impressive profits this week for the year ended March 31 (DAILY, May 23).

Staff
DOT Secretary Federico Pena will lead off today's hearing into U.S.-U.K. bilateral aviation negotiations before the Senate Commerce aviation subcommittee. The panel, chaired by Sen.

Staff
FAA said yesterday the second voice switching and control system reached initial operational capability (IOC) Sunday at Salt Lake City. The VSCS at Denver is scheduled for IOC on June 14. The agency said yesterday that the Seattle system, which attained IOC earlier this month, is "working well" and late this month is expected to become fully operational (DAILY, May 16).

Staff
Colombia's Civil Aviation Authority selected a consortium comprising Ogden Corp. of the U.S., Dragados y Construcciones SA of Spain and Conconcreto of Columbia for a 20-year concession for the construction of a second runway at Bogota. Construction of the 3.8-kilometer runway will begin next year and is expected to cost $97 million, with completion scheduled for May 1998. The consortium will maintain the runway for about 17 years in exchange for landing fees.

Staff
The U.S. airline industry's average yields rose 0.5% last month from April 1994, the group's first monthly year-over-year increase since December 1993, according to NatWest analyst Michael Derchin's spin on ATA figures.Derchin expects further yield improvement as airline capacity tightens and fares rise during the balance of the year.

Staff
Malaysian Airline System is converting two of its 747-200s into freighters, an official said. The $50 million conversions will be carried out by Boeing-Wichita. Delivery is scheduled for October and December, and the converted aircraft are expected to boost MAS's cargo revenues by 87%. MAS now operates two 737-300Fs and two MD-11Fs. The 747s will serve Los Angeles, San Francisco and Chicago twice a week.

Staff
All Nippon Airways plans to add a sixth weekly Tokyo Narita-Paris flight on June 21 and a fourth weekly Osaka Kansai-Hong Kong service on July 26 to meet continued strong demand. ANA operates 318-seat Boeing 747LRs in the Paris market and 204-seat 767-300s on the Hong Kong route. Also, ANA will put 318-seat 747LRs and 341-seat 747-400s into service on all seven weekly flights between Tokyo Narita and Beijing on June 1. Two of the seven weekly flights currently are operated with 767-300s.

Staff
An administration official said yesterday that the Air Transport Association "misconstrued" a letter from President Clinton to an airport official that said "if acceptable budget offsets could be identified, we would weigh a proposal to defer the [transportation fuel] tax against any changes in the financial condition of the airline industry." Clinton was referring to the 4.3-cents-per-gallon tax from which the airline industry has been exempted but which the government now plans to begin charging in October (DAILY, May 23).

Staff
Challenge Air Cargo is asking DOT for one additional all-cargo frequency between the U.S. and Argentina. Currently holding two weekly narrowbody frequencies in the market, Challenge wants the department to reallocate to it Florida West Airlines's one weekly frequency.

Staff
American, with more pilots on furlough than any other U.S. carrier, plans to recall 25 of them July 1, leaving 585 still laid off, its pilot union, the Allied Pilots Association, said. The carrier furloughed pilots throughout 1994, when it began grounding and selling some aircraft.

Staff
USAir Shuttle will award 5,000 bonus miles to frequent flier members who take three roundtrips or six one-way flights by Aug. 31. The Shuttle operates between Washington National and New York LaGuardia, and between New York and Boston.

Staff
Finnair said it is selling five DC-9s to Australian Air with delivery between next Nov. 1 and April 15, 1996, as part of a previously announced fleet renewal. The carrier last month said it is buying three MD-83s and leasing an MD-80. Finnair has 17 DC-9s, which it plans to replace during the next five years with MD-80s.

Staff
Emery Worldwide announced yesterday a new group to serve what it called a "growing need within many industries for a logistics service that includes inside pickup, skidding and packing, pickup and delivery on air-ride vehicles, multi-person handling crews, de-skidding, placement and packing- materials debris removal." Mark Whitrock was named market development manager of the new Customized Transportation Services. He said manufacturers of high-technology and other fragile products will benefit most from the new service.

Staff
DOT refused yesterday to confirm or deny that U.S. and Japanese officials will meet today in Washington to explore resumption of aviation talks. Relations between the two sides have deteriorated since Japan announced earlier this year that it would refuse to allow any new services by U.S. carriers - even those permitted under existing agreements - until it begins talks with the U.S. The two countries last held bilateral negotiations in August 1993.

Staff
Indonesian Research and Technology Minister Jusuf Habibie announced selection of Mobile, Ala., as the U.S. city where Industri Pesawat Terbang Nusantara's N-250 turboprop regional aircraft will be assembled, according to a Reuter report from Jakarta. An agreement on the $100 million venture is to be signed in June, he said. The Indonesian company hopes to break into the U.S. airline market with the 70-seat N-250, which is scheduled to make its first flight this year. IPTN plans eventually to sell all but a 40% stake in the U.S. venture.

Staff
Polyken Technologies said it has engineered a new line of fiberglass cloth tapes for aircraft cargo pits that meet FAA rules on smoke and flame penetration. "Right now, Polyken tape #297 is the only high-performance FAR-compliant product for seam sealing cargo pits available," said Charles Bronner, product manager. He said the new tape will help reduce a shortfall for a FAR-approved product. The tapes are available in 36-yard rolls in two and three-inch widths, he said.

Staff
Air South is extending two summer fare promotions - $20 segment fares and $55/55 young-seniors fares - until Aug. 31. The $20 segment fares are available on nonstop segments Tuesdays, Wednesdays and Saturdays, and the $55 roundtrip fares, for travelers 55 or older, are available between any two cities it serves, also on Tuesdays, Wednesdays and Saturdays. Air South continues to offer double credit to frequent fliers.

Staff
AirTran Airways will increase its nonstop Nashville-Orlando service July 1 by adding one daily flight, for a total of two. To promote the flights, the carrier is offering $69 one-way fares from Nashville to Orlando and Tampa for travel June 1 through Sept. 15. The fares do not require an advance purchase. AirTran's normal fares from Nashville range from $79 to $119.